Monday, January 24

House prices in Norway fell by 0.6 per cent in November

House prices are now 6.6 per cent higher than a year ago, according to recent statistics from Eiendom Norge.


The case is being updated …

Adjusted for seasonal variations, prices rose by 0.3 per cent, according to recent house price statistics from Eiendom Norge.

– House prices in Norway fell in November, and with falling prices through the second half of 2021, house price developments now follow the normal economic cycle, says CEO Henning Lauridsen of Eiendom Norge.

House prices are now 6.6 per cent higher than a year ago, the figures show.

– With a normal fall in house prices in December, this means that house price developments throughout the year will end somewhat lower than Eiendom Norge’s forecast for 2021 of an increase of 7.5 per cent.

– A more moderate development in house prices is good news for the Norwegian economy and for the opportunity to become a homeowner in Norway, Lauridsen says in the figures’ accompanying press release.

Sank marginally in Oslo

In Oslo, house prices fell nominally by 0.2 per cent in November. Adjusted for the season, the decline is 0.1 percent, the figures show. The 12-month growth in Oslo is thus 4.1 per cent.

– It is the lowest 12-month growth in the largest cities in Norway, just as it was last month, Lauridsen says.

According to statistics from Eiendom Norge, there has been a slight decline in the supply side in Oslo in November. At the same time, it is at a higher level than 2020 and 2016, while it is lower than the other years.

– What was sold in Oslo in November is a bit up compared to last year, and so far this year there is also a small increase in the number of homes sold in Oslo, he says.

8 percent 12-month growth in Bergen

The strongest seasonally adjusted price development was in Kristiansand, with a 1.7 per cent increase. In Tromsø, prices fell by 0.5 percent seasonally adjusted, says Lauridsen at Friday’s press conference.

In Bergen, house prices fell nominally by 0.4 per cent.

– Although house prices fell, it represented a seasonally adjusted increase of 0.8 per cent.

Bergen now has an 8 percent increase in the last 12 months.

Trondheim saw a decline of 1.6 percent nominally, and 0.2 percent seasonally adjusted. There is a 12-month growth of 8.5 percent.

In Stavanger, house prices were unchanged in November. This corresponds to a seasonally adjusted increase of 1 percent. Also in Stavanger, the 12-month growth is 8 percent.

– It is interesting to observe that Stavanger, once again, has a stronger 12-month growth than Oslo, says Lauridsen.

Expecting a lower interest rate path

Carl O. Geving, CEO of the Norwegian Real Estate Association, notes that turnover volumes are higher than normal this late autumn.

– Oslo, which started with a very strong price increase from mid-2020 to early 2021, has now corrected down to a twelve-month growth of 4.1 per cent from as much as 15.6 per cent in March 2021. This indicates that house prices will flatten out in the coming year, says Geving in a comment on the prices.

The Real Estate Association expects a well-functioning housing market in the future, they write.

– The unresolved corona situation can lead to a lower interest rate path and help maintain the relatively strong demand for housing, says Geving.

Leader Randi Marjamaa for the retail market in Nordea Norway says they notice tendencies that people are more selective, ie that there is greater interest in the classically attractive objects, especially in Oslo.

– It has been a strong November with high activity, but we see that fewer homes go over appraised. More customers than before do not use the entire framework in the financing certificate, she says.

Expected price freeze

On Wednesday, CEO Terje Buraas of DNB Eiendom said that the combination of the fact that there are few homes for sale, buyers are present and the length of stay is low, does not affect the prices. He described it as “very special”.

– There are few homes for sale, buyers are present and the length of stay is low. Nevertheless, it does not affect prices. I have been following the housing market since ’92, and this is very special, said Buraas.

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Expecting a house price freeze despite sky-high sales: – This is very special

In October, prices fell by 0.4 per cent in nominal terms. In Oslo, prices have been falling for the past eight months, except in August.

On Wednesday, Obos announced the largest fall in November for their homes in 12 years. The housing developer has about 25 percent of the second-hand market in the capital, so only today do we get to know how it went in the whole country.

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